JD Health’s interim revenue grew 34% year over year, with adjusted EPS doublingm and the management expected revenue in the second half is expected to be flat on year, with full-year revenue growth to reach a low double-digit percentage.
While the company still saw the positive impact of increased health awareness in the aftermath of the pandemic, a decline in average revenue per user is recorded due to the uncertain macro-environment, Jefferies said in a note.
The broker expected revenue from Covid products in the second half to fall by 60% – 70% year over year, while sales of non-Covid products are expected to increase by 30%, resulting in flat YoY revenue.
Jefferies cut JD Health’s target price from HK$80 to HK$66 but maintained its Buy rating, and reduced its revenue forecasts for 2023 and 2024 by 12% and 11% respectively.